Michigan's new prison food contractor accused of skimping on size and quality of meals to boost profits

May 7, 2013

Written by

Detroit Free Press Lansing Bureau

LANSING — Aramark, the company Michigan officials have selected to provide meals for about 45,000 state prisoners, has skimped on food and overbilled corrections departments in other states, according to audit reports.

Florida and Aramark parted ways in 2008 after the state repeatedly fined the company for contract violations and an audit accused Aramark of cutting costs and boosting profits by skimping on meals.

A 2010 report by Kentucky Auditor of Public Accounts Crit Luallen identified food skimping, food safety issues and excessive billings and said Aramark refused to provide requested records related to its food costs, personnel costs and bonuses paid to managers.

Aramark told the auditor the information requested was confidential, proprietary and “not relevant to a review of Aramark’s contract.”

Luallen disagreed, saying, “the privatization of government functions should be approached with the same level of accountability and transparency as if the government operated the services itself.” But she didn’t get the records.

The move to Aramark already was seen as an affront by state workers who decried the privatization. Now, the audits raise new concerns about the value for money and transparency Michigan will receive in its new contract, as well as how the change could affect prisoner morale and security.

Karen Cutler, a spokeswoman for Pennsylvania-based Aramark, did not respond Monday to telephone and e-mail messages seeking the company’s response to issues raised in the two audits.

Kurt Weiss, a spokesman for the Michigan Department of Technology, Management & Budget, would not comment on the specific issues raised in the reports.

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“The State of Michigan feels very confident in the job Aramark can and will do for Michigan,” Weiss said.

It has not all been negative reviews for Aramark in other states.

In Indiana, where the state prisons food contract with Aramark is credited with saving the state more than $11 million a year, the National Governors Association in February gave Aramark an award for a prison vocational program it said has reduced recidivism.

Aramark also has prison food contracts in Kansas and West Virginia.

In a move that will eliminate about 370 state government jobs, Michigan plans to pay Aramark about $50 million a year to feed prisoners.

The initial analysis of bids, conducted by officials from Technology, Management & Budget and the Department of Corrections, found Aramark’s bid would not save 5% — the minimum required by the Civil Service Commission to privatize state jobs. But after concerns were raised by Republican lawmakers, officials identified errors in the analysis and said savings would be close to 20%.

Approvals of the three-year contract by the Civil Service Commission and another government body are still pending.

Florida contracted with Aramark in 2001. Aramark quit the contract at the end of 2008 amid state demands for improved quality and cost containment, according to the Tampa Bay Times.

A 2007 report by the Florida Department of Corrections Bureau of Internal Audit found that a large number of prisoners stopped showing up for meals after Aramark took over the contract, “creating a windfall for the vendor and reducing the value of the services provided without a proportionate decrease in ... rates charged to the department.”

The report also said Aramark reduced its costs by repeatedly changing the menu, substituting, for example, “less costly meat products such as ground turkey for previously required beef products.”

In Kentucky, Yonts said, Aramark has made significant improvements since the 2010 audit he requested.

But officials in Michigan “had better watch to make sure that every ‘i’ is dotted and every ‘t’ is crossed,” Yonts said.

Food was a factor in the 2009 riot at the Northpoint Training Center, he said. The $17 million it cost the state sharply offset any privatization savings, Yonts said.